Gamesys Group reports UK growth as 2019 revenue rises 15%
Asian and UK-facing brands grow as CEO Lee Fenton reiterates “quality over quantity” approach
Gamesys Group today reported a 15% year-on-year rise in gaming revenue to £565.3m on a pro forma basis as adjusted EBITDA fell by 4% to £158.9m.
Revenue from the UK market rose by 31% for 2019 to £214.6m, although growth was still impacted by enhanced responsible gambling measures and the launch of a dedicated Rainbow Riches site.
The UK revenue rise comes despite the group closing its Vera & John and InterCasino brands to UK players in August.
Asian group revenue increased by 137% to £122.4m, buoyed by strong growth of the Vera & John brand in the Japanese market, which accounted for 96% of Asian revenue during 2019.
However, European revenue declined by 15% to £68.6m, due to the impact of slowing growth in Spain with its Botemania brand and weak performance of the Vera & John brand in Sweden.
Active players per month grew to 587,399, a rise of 18% year-on-year, while average real money gaming revenue increased to £45.4m, up 13% for 2019.
Lee Fenton, Gamesys Group CEO, said he was delighted by the group’s strong financial performance during 2019, particularly given the significant work undertaken during the acquisition and integration of the legacy Gamesys business.
“It was particularly pleasing to see the UK return to moderate growth in 2019 as we annualised the introduction of enhanced responsible gambling measures and we expect to see similar trends in 2020,” Fenton said.
“We are confident that our approach of multiple trusted brands, player centricity and a focus on the quality, rather than quantity, of content will leave us well-positioned to make market share gains,” Fenton added.
Regulus Partners analyst Paul Leyland said the company should be able to maintain its UK growth despite the challenging market and cited strong operational expertise in the Japanese market.
“Gamesys therefore has clear strengths in UK mass market gaming and has unlocked the ‘secret’ of Japan, but both these exposures contain risks,” Leyland said.
“Broadening product and geographic exposure is the answer to this, in our view, but both have high execution risk (vide ‘Other Europe’) and the former was actively swerved by leaving Virgin Bet behind,” Leyland added.